Product Liability Insurance

Sales & Service Indemnity For Motor Traders

Sometimes the work you carry out or the products you fit to a customer’s vehicle might not be up to scratch, might be faulty or damaged, and might cause loss, damage or injury to a third party as a result. In these cases, if a claim is made against you, then Product Liability insurance would help you cover the legal liability, and the costs of counter-suing the product manufacturers or suppliers. Get a quote now!

What Is Product Insurance And What Does It Cover?

Product Liability, also known as Sales and Service Indemnity, is a type of insurance that covers you for any incidents caused after the sale or service of a vehicle, or after you have carried out work on a customer’s car, bike or van that you could have otherwise been liable for. Despite every effort of inspection and intentions for quality workmanship, there is still a chance that something could go wrong; a part you fit may be faulty or defective, or it may be fitted incorrectly which then causes damage to the vehicle incurring further expense. This policy will help cover any claims of injury or damage made against you after the vehicle has left your premises.

Product Liability Insurance Explained

Regardless of how vigilant or meticulous you are, there will always be a chance for an accident to happen. When you are in the business of repairing or selling vehicles, the implications of such accidents become much greater. If anything were to happen whilst your customer was on the road, it could lead to serious damage, injury or even loss of life. Sales & Service Indemnity insurance is intended to protect you against such claims.
Imagine if a customer’s brakes were to fail after having them repaired by your company. A successful claim of this nature could reach hundreds of thousands of pounds depending on the outcome of the incident. Similarly, if you were selling a vehicle, although every intention is good and every vehicle is checked, you cannot account for everything. For example, if someone purchases a vehicle from you and the next day the steering locks up and they have an accident, you would be liable and as such could face a heavy penalty. At least with Product Liability insurance, your protection is extended beyond your business activities, to cover the work carried out and any parts fitted.

So what can cover include?

Sales & Service Indemnity Insurance
Product Liability Insurance
Faulty or Defective Parts Fitted
Cover Beyond Your Business Activity
After Sale Cover
Post Service Cover

Product Liability Insurance can be very beneficial should the worst happen

The kind of motor trade related businesses that could need Product Liability insurance is a broad range; It’s practically anyone operating a business providing a service or selling a product, such as a car dealer or trader, a mechanic, a tyre or exhaust fitter, a repair centre, an MOT station, body shop garage, or paint shop. If there is a potential exposure for liability caused by any of the work your business carries out, or from the products your business sells, then you could benefit from Product Liability insurance. Maybe you have recently sold a vehicle and the handbrake had an underlying problem that didn’t show in the checks you carried out, causing it not to work properly leading to it rolling back into another car? You may have been completely unaware of this problem but you would still be liable for it and any damage caused as a result. Likewise, if you have just fitted a new tyre and the seal wasn’t tight enough causing it to deflate and damage the alloy, then you’d be liable for the cost of replacing and fixing this.

So who could benefit from this cover?

Motor Traders
MOT Service Centre Owners
Mechanics
Valeters
Garage Owners
Tyre & Exhaust Fitters
Bodyshop Owners

Why Is It Important To Have Product Liability Insurance?

Irrespective of how stringent you are, accidents can always happen and cannot be prevented 100%. Sometimes things happen that are beyond your control but unfortunately you may still be liable. This is where a Sales & Service Indemnity Insurance policy would cover you. It will protect the products you sell and fit to a customer’s vehicle, or the service you have performed so if the unfortunate were to happen and something does go wrong, you will not end up with huge costs to pay at the end of it. You may think that the chances of such a thing are incredibly small for you, and while that may be so, you need to consider whether you could cover the costs if an incident did happen? You need to take into account the possibility of damage caused to the customer’s car, any injury caused to them and any passengers travelling with them, and then also any third party damage or injury as a result. The cost you could be liable for in these circumstance could be quite a sum, but you then have to factor in any legal expenses too. When you look at the bigger picture, if you are in a line of work that could end up in this position, then the extra pounds to have this product added to your insurance policy could far outweigh the risks of something going wrong, and you not being properly covered.

Here’s a summary of why you should consider this cover:

To Cover The Services You Offer
To Cover Faulty Or Defective Parts Fitted
For Extra Business Protection
For Peace Of Mind
To Minimise Risk

Product Liability Insurance Experts

Make sure your business is protected against claims made against you by customers and members of the public, following an accident or incident caused by negligent work or faulty parts, which result in loss, damage to property, personal injury, illness, or even death to a third party. With so many potential hazards in your motor trade business, can you afford not to have cover in place? If a claim was made against you could you afford to pay the legal fees associated with it, and possible compensation too? If not, this could result in the closure of your business, so you need to make sure you’ve considered all the options. So why have motor trade Product Liability cover:

• Protect Your Customers
• Protect Your Business
• Protect Members Of The Public
• Cover Third Party Property
• Cover Legal Defence Costs

Why Choose Think For Your Product Liability Insurance?

Are you still looking for more reasons to get a Product Liability insurance quote from Think? No problem, here are some additional features and benefits of our Product Liability insurance cover:

• Cover for full time and part time motor trade businesses
• Cover for traders working from home or designated business premises
• We’ll cover your legal liability costs associated with any claims made against you
• We deliver award winning service
• We can also cover you for Public Liability and Employers’ Liability
• Free 24/7/365 Claims Helpline
• Flexible payment options available for motor traders